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Analyst calls on Apple to buy Tesla

This is the layman's understanding of how the tech world works: come up with an idea; execute idea; start making money; get bought out by Apple, Google or some other wealthy company seeking the Next Big Thing; retire to Fiji at age 23. Occasionally, though, one of those startups grows quickly enough to avoid being bought out by the big boys of Silicon Valley. Tesla is one such startup, and while it's an automaker as much as a tech company, the mingling of both worlds in its business model has helped the company survive since 2003, become publicly traded in 2010 and avoid being bought out by a bigger company (though the personality of its co-founder and CEO, Elon Musk, may have something to do with that, too).
This record of independence hasn't stopped the analysts from talking, though. According to CNN Money, Andaan Ahmad, a London-based investment banker with German bank Berenberg, has petitioned Apple CEO Tim Cook to buy out Tesla and bring Elon Musk into the Apple family. On paper, the move would sort of make sense: since the death of Steve Jobs, Apple appears to some to have been sagging, releasing better iterations of its currents products but lacking the big, new, industry-investing widget that makes people go mad. Expanding into the automotive market, a long-rumored destination for Apple, would allow the Cupertino, CA-based brand to stretch its legs in a new direction. As Ahmad notes, Apple needs to go "out of the box" or "the key debate will always be about [Apple's] ability to sustain these abnormal margins in [the] iPhone business."
Although not expressly discussed in the CNN story, we could also see some big benefits for Tesla. The Palo Alto-based automaker has been locked in a war over direct sales to customers with a number of dealership groups across the country, many of which have particularly powerful political lobbies. If Tesla had the backing of the world's most powerful company, which also has success in the business of upgrading traditional retail experiences, it could help establish the direct-sale model on a wider scale.

Buick tops in Consumer Reports' annual brand rankings

Buick is the first US-based automotive brand to crack the top 10 in Consumer Reports magazine's annual brand report cards. US automakers also placed three vehicles on the magazine's list of "top picks" for vehicles, the first time that's happened in 17 years. The rankings were unveiled Tuesday in the magazine's annual auto issue. Buick placed seventh in the brand rankings. But the brand rankings and top picks still were dominated by Japanese and German manufacturers, with Lexus, Mazda, Toyota, Audi and Subaru taking the top five brand spots. The magazine calculates each brand's overall score with a composite of its vehicles' road-test scores and reliability scores for each model in its annual survey of subscribers. It's the third year for the brand rankings. Porsche placed just ahead of Buick at number six, while Honda, Kia and BMW rounded out the top 10 brands. Mercedes-Benz, Acura and Infiniti all suffered precipitous declines in their rankings due to unreliable new models or poor road test scores. Mercedes fell out of the top 10 to 21st, while Acura dropped from number two to 11 with an unimpressive test of the new RLX sedan, the magazine said. In the model rankings, the top overall finisher was California-based Tesla's Model S electric car, for the second year in a row. The Model S, which cost the magazine $89,650, finished first due to its performance and technical innovations, the magazine said. Buick's Regal midsize car beat the BMW 328i as the top sports sedan, and the Chevrolet Impala was named the top large car. The model rankings show Consumer Reports' favorite among the 270 vehicles its team has recently tested. The rankings are closely watched in the auto industry, since shoppers consistently cite Consumer Reports as a main source of car-buying advice. Other top picks included the Subaru Impreza in the compact car category, Subaru Legacy in midsize cars, Toyota Prius as the best green car, Audi A6 luxury car, Subaru Forester small SUV, Toyota Highlander midsize SUV and the Honda Odyssey minivan. Japanese vehicles won six of 10 top pick categories, but that was the smallest number in the 19-year history of Consumer Reports top picks. "For years domestic automakers built lower-priced and lower-quality alternatives to imports, but those days are behind us," said Jake Fisher, the magazine's director of automotive testing. But other U.S.-based automakers still had problems.

BMW NA president says i3 beats Tesla EVs thanks to lighter all-around footprint

Those waiting for a full-out brawl between Tesla Motors head Elon Musk and BMW North America chief Ludwig Willisch will have to wait a bit. For the bloodthirsty, there are signs of some healthy competition and a little bit of green-car sniping between the two automakers. Willisch, speaking at the Detroit Auto Show earlier this month and responding to questions about Tesla, noted (without mentioning that company by name) that the production process of the German automaker's i3 plug-in was "greener" than any other. According to Business Insider, Willisch highlighted the fully recyclable materials used to construct the i3 as well as the hydropower used at the carbon fiber plant in Moses Lake, WA. Willisch also noted that the Tesla Model S is "very heavy on the braking. Our car feels just like a normal car. That's a big difference when it comes to driving," Automotive News said in a separate report. The latter model weighs about a third less than the Tesla, though it also has an EV range about a third as big. The BMW executive did allow that the Tesla did make a good proverbial "snowplow," not for its driving characteristics but for its ability to get more people conformable with electric vehicle technology. Musk was asked about the i3 in an August conference call and laughed before noting that the i3 had "room to improve." No word on whether Musk and Willisch will be sending each other Valentine's Day cards next month.